9 December 2014
Quintas Tax Update
Tax Issues Needing Consideration before the Year End
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Quintas Tax Update

Welcome to our second bi-monthly tax update. 

This issue focuses on several tax issues which may need to be addressed before the end of the year.

We hope you'll find the update useful and if you have any queries don't hesitate to contact us by email at info@quintas.ie or call 021 4641400.

Tax Issues Needing Consideration before the Year End
by Dave O'Brien
Dave O'Brien, Tax Manager
Dave O'Brien, Tax Manager

7 years CGT Exemption

October’s budget confirmed that the 7 year CGT relief will cease by 31 December 2014. Therefore if you are considering buying a property in the short term you should make every effort to get the contracts signed by 31 December 2014.

Specified Capital Allowance

With effect from 1 January 2015 any unused property capital allowances which have been carried forward beyond the tax life of the building are immediately lost.  Fortunately this does not apply to Section 23 and Section 50 properties, but does apply to all other property incentives.

Agricultural Relief

Significant changes to agricultural relief will apply from 1 January 2015. The relief allows for a 90% discount in gift/inheritance tax where the recipient of the gift has agricultural assets exceeding 80% of their total assets.

From 1 January 2015 the recipient must also be considered an active farmer to avail of the relief. This effectively means they will have to spend at least 50% of their time working as a farmer for not less than 6 years following the gift/inheritance or alternatively leasing the land to an active farmer for at least 6 years.

Until the end of this month the added “active farmer” restriction will not apply.

Gifts to Children for Education, Support & Maintenance

From 1 January 2015, the exemption from gift tax for gifts made from parents to children for their education, support and maintenance is to be restricted. Currently any child could be in receipt of money or “moneys worth” from a parent and where that payment was considered “normal expenditure” for the parent it was deemed to be exempt from gift tax in the hands of the child. However from 1 January 2015, the relief will only apply to minor children (under the age of 18) or children under 25 if they remain in full time education.

CGT Payment Dates

  • If you dispose of a chargeable asset between 1 January 2014 and 30 November 2014 then you are obliged to pay any Capital Gains Tax by 15 December 2014.
  • If you dispose of a chargeable asset in December 2014 you are obliged to pay any Capital Gains Tax on or before 31 January 2015.
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